HDB deficit in FY2022 reaches S$5.4 billion

In FY2021, the Central Provident Fund (CPF), housing grants totaled S$849 millions. This year, however, only S$686 were given to those who qualified for resale condominiums or executive flats.

HDB reported that this number is consistent with the reduced number of resale sales, which was 27,900 transactions in FY2022 compared to 30,400 transactions in the prior year.

The board reported it also spent S$141 million on rental flats, an increase of S$121 millions from FY2021.

Home Ownership Programme expenditures of S$4.7billion included the development of Build-To-Order Flats (BTO), housing subsidies, and grants. This is a 22-percent increase from the S$3.9 billion it spent in FY2021.

Housing is at the core of our social compact. The government continues to support Singaporeans’ home ownership journey.

Upgrade programmes cost another S$558m, up by 40% from S$392m in FY2021. The major reason for the higher spending on these programmes was the increase in construction works undertaken under the Home Improvement Programme.

In FY2022, HIP upgraded 33,704 homes. Over half the residents of flats which underwent HIP also chose to upgrade their homes with elderly-friendly fittings, at subsidised costs under the Enhancement for Active Seniors (EAS) programme.

HDB also spent S$432million on residential ancillary tasks, including the administration of leases, the provision and administration of amenities such as parking in housing estates.

As the board explained, this was partially because of expenditures for the upgrade of electrical supplies in HDB estates.

Housing and Development Boards (HDBs) have reported a deficit of S$5.4billion for their financial year 2022. The HDBs broke the S$4.4billion record that was set in FY2021.

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In the same way as the previous year’s net deficit, this year’s figure is mainly due to a shortfall in public housing.

In order to prepare for its plan to classify flats into Standard models, Plus models, and Prime Models from the second half 2024, it said that in addition to the substantial discounts on the Standard flats the board will also price additional subsidies onto the Plus and the Prime flats.

These flats are also subject to subsidy recovery and longer MOPs (minimum tenure periods) in addition to tighter conditions on resale, rental, and resale.

HDB reported that it expected to lose S$2.7billion in FY2022 on flats currently under development, compared to S$2.3billion in FY2021. It is due to the fact that the amount collected for flats sold remains lower than total development costs and housing grants.

The wider gross loss was S$1.2 billion, which is almost twice as much as the S$659 Million loss that had been reported for the previous year.

HDB has sold 18,478 housing units, excluding flats and studio apartments that were leased for a short time. The highest sales figure over the last five-year period, compared to the 13,506 flats sold the year before.

HDB announced that it still plans to build up to 23, 000 flats in the year 2023.

It will monitor housing demand closely, and make the necessary adjustments. The target is to launch 100,000 apartments from 2021-2025.

As a result of the substantial market discounts and different housing grants, nearly 90 per cent first-timer households have been able service their housing loan using CPF with little to no cash outlay.

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